EANS-Adhoc: ESCADA AG: Sale of ESCADA Group's operative business to Megha Mittal

ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement.

05.11.2009

Munich, November 5, 2009: Today the insolvency administrator of ESCADA AG signed a sale and transfer agreement with one of the Mittal Family Trusts ("the Trust"). With the execution of the agreement all key assets of ESCADA AG's operative business as well as shares in ESCADA AG's subsidiaries will be transferred to the Trust. Excluded thereof are any subsidiaries, which serve as guarantor for the ESCADA bond. The preliminary creditors' committee has approved the transaction.

The transaction provides for a transfer of ESCADA AG's business operations, including employees as well as worldwide brand rights, production facilities and the sales and distribution structure to the Trust. The Board of Management and the new investor have agreed to cooperate on the basis of the business strategy launched in mid-2008 securing continuity of the operative business. The transaction is subject to customary antitrust approvals.

end of announcement euro adhoc

issuer: ESCADA AG Einsteinring 14-18 D-85609 Aschheim/München phone: +49 (0)89 9944 0 FAX: +49 (0)89 9944 1111 mail: info@de.escada.com WWW: http://www.escada.com sector: Clothing ISIN: DE0005692107, XS0215685115 DE0005568174 indexes: CDAX, Classic All Share, Prime All Share

stockmarkets: Open Market: Berlin, Hamburg, Stuttgart, Düsseldorf, regulated dealing/prime standard: Frankfurt, regulated dealing: München language: English

Rückfragen & Kontakt:

Investor Relations
Yara Kes
Tel.: +49 (0) 89 9944 1336
E-mail: yara.kes@de.escada.comWirtschaftsmedien:
Frank Elsner Kommunikation für Unternehmen GmbH
Frank Elsner
Tel.: +49 - 54 04 - 91 92 0
Email: info@elsner-kommunikation.deMittal Family:
Nicola Davidson
Phone: +44 7730 671 998

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